into the harbor of Buenos Aires amounted to $661,000,000. Of this amount only $33,000,000 came from the United States. Rightfully 75 per cent, instead of less than 5 per cent, belongs to this country.

I want to call the attention of my distinguished friend from Tennessee [Mr. Garrett] to some of the following facts with which he is more or less familiar. By these methods these foreign shipping combines have "fixed" the trade of the United States until it is absolutely at the mercy of foreign ships and foreign competitors.

These conferences refuse not only to pay rebates to the disloyal shipper, but, once he disobeys instructions, they will not thereafter carry his products.

These various "conferences" cover the entire world. The methods pursued by them all are the same; they vary only in detail.

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SOME AMERICAN CONFERENCES."

We are, however, especially concerned with the conference that include the lines running to and from the United States.

The conferences including the lines on the Atlantic Ocean are controlled by English and German lines; on the Pacific Ocean, by Japanese, English, and German lines.

The details concerning most of these conferences throughout the world, giving the name of each one, the lines that compose them, and the system of rebates practiced by them, are published in these volumes of the royal commission's report.

These tables and other extracts from this report I shall publish in the Record, and, whether or not the Members of this House shall pay me the compliment of reading my speech, I trust that they will read these quotations.

These great conferences between here and Europe not only fix freight rates by agreement, not only agree to fight any competitive lines, not only give rebates and practice other discriminations, but these lines are in a vast pool. The lines between here and Europe are formed into three pools. The first is known as the continental pool, representing all lines running regularly between the United States and European ports outside of the Mediterranean; second, the Mediterranean pool, consisting of all lines between the United States and Mediterranean ports; and, third, the British pool, consisting of all lines running between the United States and ports of Great Britain and Ireland. These pools consist, in addition to others, of the following lines:

Each of these pools places a portion of its earnings in a common fund, and that fund is then divided among the different lines according to the basis previously agreed on by the conference, regardless of the earnings of each line.

The headquarters-the home office of these pools is at Jena, Germany. Its secretary is Mr. Peters. Here is where the bulk of the business of all of these pools is transacted. Here the rates of both passenger and freight traffic are agreed on; here the different plans for the conduct of the business are made; and here each month the different representatives meet and divide the spoils the tribute levied on the American shipper.

These foreign steamship lines, comprising the various conferences and pools that run to America, have their agents and representatives in this country. They own terminal facilities and other property at Jersey City, Hoboken, and in New York and in other cities of this country of great value. It seems to me, as a question of law, under these facts, that these companies are within the jurisdiction of our courts. However, up to this time, the Interstate Commerce Commission have decided that they have no authority to prohibit the practices followed by these conferences, as regards any case that has been presented to them. Many of these questions were raised in a case brought by Peter Wright & Sons, agents of the Cosmopolitan Shipping Co., Philadelphia, against the Hamburg-American Packet Co. et al. Demurrer to the complaint in that case, on the ground that the commission had no jurisdiction, was sustained. It is worthy of comment that the chief counsel of this great monopoly is the Hon. John C. Spooner, formerly United States Senator. It might also be worthy of recollection that Senator Spooner, a short time before he resigned from the Senate to accept this employment, strenuously opposed the passage of a merchant-marine bill.

Not only do these conferences pool their earnings, but they have divided the United States into different zones. Not only do they fix the rate of freight across the Atlantic, but they also fix the rates on freight originating at inland points in the United States, and they fix the rate on freight going to inland points of the United States. They fix the rate from Chicago to Europe, and from Europe to Chicago. Further than this, they direct through what ports inland freight shall come and go. They tell the shipper of Cleveland whether he shall send his goods for Europe through the port of Boston, New York, Baltimore, Philadelphia, Norfolk, or Newport News. They tell the shipper of goods from Europe to St. Louis, and from St. Louis to Europe, through what port he shall send them.

Moreover, this combine of foreign ships, working with the railroads of this country, will send a ton of crockery from Germany to Denver for less than the same railroad will carry a ton of the same product from Pittsburg to Denver. They will send a case of beer from Germany to Salt Lake City for less than the same railroad will carry a case of beer from Cincinnati to Salt Lake City.

Of what protection is our tariff to the manufacturers of this country against such discrimination practiced by these foreign trusts? Of what use will our new railroad law be to prevent monopoly and discrimination so long as these things continue?

Of course, we would not for a moment permit such discrimination by the railroads of this country on any American product, but we smilingly submit to this discrimination against the American producer in favor of the foreign producer.

Not only do these conferences pool as to the freight, but also as to the passenger traffic. This combine of foreign ships sends thousands of poor, ignorant immigrants to this country on slow, inferior ships to Baltimore and Philadelphia, who have paid for a passage on faster and better ships to the port of New York City. This is especially true of what is known as the prepaid traffic. Here is a matter that I call to the attention of the Immigration Commission for their investigation.

There is not a single passenger carried between this country and Europe, not a single pound of freight carried between this country and Europe by any regular line, for the carrying of which there is the slightest competition. The price is fixed in advance at Jena, Germany, for the carrying of every passenger and for the carrying of every pound of freight.

Mr. GARRETT. I think it is fair to state that it has been testified before the Steenerson committee, as the gentleman calls it, that the testimony shows that in the days when there was a subsidized line running to South America the freights were 60 per cent higher than they are now.

Mr. HUMPHREY of Washington. I will come to that later. If such testimony has been given, it is misleading entirely. It is not a question anyway of freight

rates particularly that I am discussing now, it is a question of combinations and pools, to which the entire commerce of this country is subjected. There is no dispute about this being true. I want to take this occasion now to say to the members of the Rules Committee that I undertake to furnish them full and satisfactory evidence of every statement that I shall make on the floor to-day, and what I do not have in the shape of records I will furnish them by witnesses. I will now take up the trade to South America to which the gentleman from Tennessee refers.

BETWEEN HERE AND SOUTH AMERICA.

The main conferences between here and South America are the River Platte, Central Brazil, North and South Brazil, and Minor Brazil conferences. The names of the various lines composing these conferences and the amount of rebate paid by each is set forth in volume 2, appendix 1, page 8, of the "Royal Commission Report on Shipping Rings." This I will publish with my remarks. (See Exhibit A.)

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These particular conferences usually pay rebates of from 5 to 10 per cent, and the time is from 6 to 18 months-on the same conditions as the other conferences" heretofore mentioned. Most of their contracts have in them a condition to the effect that these rebates must be paid to some representative in Europe.

The principal lines in these South American "conferences," running from the United States to South America, are the Lamport & Holt, Hamburg-American, Quebec, Royal Dutch West India Mail, Trinidad Shipping & Trading Co., Brazilian Lloyd, Prince, Booth, Barber, Howard, Houlder & Partners, Norton, and Houston lines.

The lines running between United States and South America in these various conferences consist of slow and antiquated vessels, out of date in every respect, and used on these lines largely because of the fact that they can no longer be used in the trade between Europe and South America.

The Lamport & Holt line has one vessel that makes about 13 knots an hour. This is the finest vessel running between here and South America-the vessel that these foreign lines have advertised so extensively. This vessel will run from Buenos Aires to New York in from 25 to 30 days in ordinary weather. This crack vessel of the South American conference is of a character on which the ordinary American citizen would not travel except as a matter of necessity. The service between Europe and South America is incomparably better than the service between the United States and South America-and let it be remembered that the service between this country and South America and between Europe and South America is furnished by the same combination of foreign ships belonging to the same foreign countries. But, for the slow and inadequate service in inferior ships between this country and South America, the freight and passenger rates are considerably higher than they are between South America and Europe, in modern and up-to-date vessels.

Let me give some facts as to the service we have been hearing so much about in the newspapers between here and South America, and that the gentlemen, some of them, before the Steenerson committee, have been praising.

The freight rate between this country and South America, in these antiquated and slow vessels discarded from other trades, is the highest ocean rate in the world.

It takes from one to three months to get a newspaper from the United States to South America, and even in this slow service there is no regularity whatever. To illustrate: McClure's Magazine for January, February, and March, 1910, all arrived at Buenos Aires at the same time-the last of April.

It takes from three to eight months to get an order from South America and to have the goods delivered to that country to fill the order.

But prompt and regular delivery is made between Europe and South America, both mail and freight, and these discriminations against the United States in favor of Europe, let us not forget, are made by the same lines of foreign ships. Much of the goods from Bahia to New Orleans are sent via Europe because of rapid and certain service.

Now, I think it is fair that I should state that in the evidence before this royal commission, and also before what is known as the Steenerson committee, it has been stated that the rebate system between here and South America and the conference combinations no longer exist. But in reading through these various documents and in reading the evidence before the Steenerson committee you will find that, as a matter of fact, they do still exist, but that it is done in

secret, or that the rebates are paid in Europe. One witness, as I recall, before the Steenerson committee, testified that he had received $28,000 in rebates, and he also furnished the committee with a copy of his rebate contract, which I will also insert in the Record. (See Exhibit D.) If any man thinks that the rebate system has been abolished between here and South America let him read this contract. As throwing considerable light upon this question, I want to read from a report made to the royal commission at the request of the ambassador to this country, Mr. James Bryce, by the consul, Mr. Clyde Bailey, of New York. I read from Volume II of Report of Royal Commission on Shipping Rings,page 227:

"That shipping rings or conferences exist is an open secret, and the following list reveals the fact that their operations affect all the principal foreign trade routes from this port.

"In most instances both the shipowners and shippers deny that any rebates are granted, and though technically correct, such reimbursements can generally be found concealed under such heads as "advertising" or "brokerage."

"The object of these rebates is no doubt to stifle competition, as it would be difficult, if not impossible, for any independent line to give service equal to the frequent sailing of the ring and quote rates at least 10 per cent below the conference rates or give the equivalent rebate.

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Inquiries which have been made tend to show that though discrimination in rates is granted, the system does not appear to be in force to any great extent, excepting in the case of gigantic corporations such as the Standard Oil Co. and the United States Steel Corporation, both of whom are in a position to dictate their own terms on the threat of giving their business to competing companies or of chartering their own tonnage. It is possible and even probable that other large shippers are occasionally favored in this manner, but all such transactions are disguised under some other name."

But to return to the South American trade and to show the infamous discrimination of these foreign ships against us, consider these further facts:

Of the 38 mail steamers due to arrive at Buenos Aires during the last day of April and the month of May, 1910, but 1 was from the United States, and that the English vessel Verdi. Of 45 freight vessels due from foreign ports for the same period, 4 were from the United States. Of the 35 mail vessels due to sail from Buenos Aires for the same period, only 1 of these-the British steamer Voltaire-was bound for the United States, and of the 38 freight vessels due to depart from Buenos Aires, only 2 were bound for the United States. All the other vessels due to arrive and depart were either from or to Europe, with the exception of 3 to local ports.

This shows, in striking contrast, the difference between the service furnished by these "conference" lines to Europe-the home of these lines-and to the United States.

Under such conditions, is it any wonder that practically all the passenger traffic between here and South America is by the way of Europe? Is it any wonder that a thousand people from South America go to Europe where one comes to the United States? Is it any wonder that of the great trade of South America the share of the United States is insignificant? Is it any wonder that many American manufacturers have been compelled to establish factories in Europe to make their goods in order that they may reach the South American markets? Is it any wonder that these foreign steamship trusts have succeeded in practically driving the United States out of the South American trade for the benefit of the foreign countries under whose flags they operate?

A short time ago two or three other gentlemen and myself, in public speeches in the city of New York, spoke of the inadequate and abominable service between here and South America. I also wrote an article that was published in Pearson's Magazine in which I referred to this condition. In order to attempt to conceal from the American people the truth in relation to this service, the representatives of the Lamport & Holt Line-Messrs. Busk & Daniels-wrote a letter that was misleading, and in which many of the facts were suppressed and distorted. This letter was presented to certain concerns in New York who ship goods between New York and South America and who have rebate contracts with this line. These same shippers were compelled to sign this letter— one of the signers testified that they had received rebates from this line for the past year in the sum of more than $28,000. After these shippers who were receiving these rebates were coerced into signing this letter, it was given to the advertising agent of the conferences controlling the lines running between this country and South America, and by him sent out to the various newspapers in

the United States that carry advertising of these foreign lines, with the request that it be published and that comment be made, and with this request was sent a renewal of the advertisement in some of these papers. Even so great and so conservative a paper as the Post, of Washington, D. C., was deceived and trapped by this letter and published a portion of it with favorable editorial comment.

Let me add that this system of rebates, conferences, and pools is not prohibited by law in England or Germany or by any other country of Europe, but is recognized and upheld by the law; therefore, in the testimony given before the royal commission they testified without reservation as to those countries, but when it came to the United States they either said the system had been abolished, as they understood, or that it was carried on under cover, and in some instances they refused to testify because they claimed it would expose trade secrets.

Mr. EscH. Will the gentleman yield for a question?

Mr. HUMPHREY of Washington. Certainly.

Mr. EscH. If the world's commerce is pooled through conferences, and America should establish a mail line to South America under the subsidy bill which the gentleman has introduced, how could the American lines live under the possible competition of these conferences and pools? Would not the American lines have to come to Congress for an increase from time to time? Mr. HUMPHREY of Washington. I doubt if the gentleman's hypothesis is true. In the first place, if they were run under a mail contract, we would have complete control over them, and if they entered into these pools or conferences, the contract should be canceled. If we had a single line of vessels running between here and South America which we could control, it would, to a great extent, destroy these combinations and conferences, for they would have to cut rates and carry the traffic at the same rate as the American ship. This reduction in rates would pay this country many times over what it would give these vessels for carrying the mails.

Mr. MORSE. If the gentleman will allow me, what would prevent that line of vessels owned by the Americans from entering into the agreement with these people?

Mr. HUMPHREY of Washington. What would prevent it would be our law and the authority vested in our courts. We can control our own lines. I do not want the gentleman to understand that I am defending American lines if they belong to these combinations. I believe that the American lines running across the Atlantic Ocean that are receiving mail subsidies from this Government are in these conferences. I have no direct evidence on that particular point. The evidence that I have is indirect, but I believe it is true. Mr. MORSE. You would cut off the subsidy?

Mr. HUMPHREY of Washington.

Yes; certainly.

WEST COAST OF SOUTH AMERICA.

The lines running between this country and the west coast of South America belong to what is known as the west coast of South America conference. It practices the same system of discriminations and rebates as the others that I have described, and, according to the statement published in this report of the royal commission, the amount of rebate paid is from 5 to 10 per cent. service furnished by this conference is even worse, if possible, than that furnished between this country and the east coast of South America.

The

The chairman of this particular conference in New York is Mr. George L. Duval. This gentleman has never failed to appear before the Merchant Marine Committee of the House of Representatives to oppose any legislation that had for its purpose the assisting of our merchant marine, and he has always brought with him to help oppose such legislation his hired attorney, Mr. J. Hampden Dougherty.

SOUTH AFRICAN CONFERENCE.

The lines running between here and South Africa are formed into what is known as the South African conference. They practice exactly the same methods and systems as the conferences between this country and South America. The lines in this conference are always careful that competitive products of the United States, regardless of distance or other advantage, shall not be carried for less than the same products are carried from Europe.